Union Budget 2025 Expectations – How Trump’s Policies & Budget Impacts on Markets and India

Expectations from Key Sectors in Union Budget 2025

As the Union Budget 2025 approaches, industry leaders and analysts are hopeful for policies that drive growth, affordability, and innovation across various sectors. Here’s a summary of their key expectations:

Healthcare: Increased investment in AI-powered health-tech, expansion of medical infrastructure, and promotion of data-driven solutions to enhance healthcare outcomes.
Real Estate: Raise the tax deduction limit for home loan interest under Section 24(b) to ₹5 lakh, streamline project approval processes, and rationalize GST rates to boost the sector.
Insurance and Investments: Introduce tax exemptions for term insurance premiums, raise the ELSS investment limit to ₹3 lakh, and reinstate LTCG benefits for debt mutual funds.

Additionally, macroeconomic measures such as increasing the standard deduction limit, broadening tax slabs for middle-income earners, and stabilizing the rupee through higher import duties are anticipated to support economic growth and fiscal stability.

Key Challenges Ahead of the Union Budget

India faces significant economic hurdles that must be addressed in the upcoming Budget:

Weak Urban Demand: Slowing private consumption reflects financial stress on households and the impact of high borrowing costs.
Investment Slowdown: Low investment in infrastructure and industries raises concerns about long-term economic growth.
Unemployment: Persistent unemployment, coupled with inadequate job creation despite public investments, remains a critical issue.
GST Collection Challenges: Sluggish GST revenue growth is straining state government finances.
Rural Distress: Rising inflation and erratic monsoons have adversely affected rural consumption, exacerbating financial hardships for rural households.

India’s Union Budget 2025 will play a crucial role in addressing these challenges while fostering growth across key sector.